Is Eaton Stirring the Pot?

A report in Automotive News this week that quotes former Chrysler co-chairman Robert Eaton may create cause for more legal suits aimed at demerging DaimlerChrysler. The basic problem is that either Eaton is very naïve, or he, or DCX chairman Juergen Schrempp, is not providing full disclosure.

This week Eaton told Automotive News that he believed the merger was one of equality. I want to make it very clear that I have not deceived anyone, Eaton told Automotive News. I believed from the bottom of my heart that this was a merger of equals, and I believed that the combined company would be the strongest automotive company in the world."

Schrempp, however, has told the London Financial Times that telling everyone the merger was one of equals was only a façade in order to gain approval and support for it. In reality, Schrempp says he and Eaton both knew that Chrysler would eventually become a unit of DCX.

Eaton has declined to say anything else on the merger, but he may be forced to testify under oath if suits filed by Kerkorian and other shareholders go to trial. The truth might be interesting.